The rental market is booming as people move away from the desire to own a home, and with high rates of competition, you can find great profits in property investments. If you’re looking for ways to make your rental business more lucrative, consider incorporating these strategies into your business model and watch your profits skyrocket.
Be Smart About Your Advertising
Want to search out those cooperative high-quality tenants? You’ll need to do one better than a simple posting on Craigslist. Advertising through the right avenues will give you immediate access to a better pool of candidates. Use a legitimate listing website like Livelovely.com to post your home. Use professional photos with good lighting, be thorough with the details on your listing, and provide all the right contact information. Taking these extra steps will see you flooded with more high-quality applications, allowing you some room to be extra picky about who you eventually rent to.
Finding High-Quality Tenants
One of the easiest ways you can make more from your rental is to find high-quality, higher-paying tenants. Every landlord knows that a nightmare tenant can be the catalyst that brings your rental business down, and if you’re looking to make more money you’ll need to place better tenants in your property. You’ve heard it before, but I’ll say it again—the best way to do so is through thorough tenant screening. Make sure you use a company or service that will give you a rigorous renter credit report to ensure you place a trustworthy person in your rental. You’ll have access to all the essentials like credit scores, criminal histories, and any previous evictions they might have faced. Being informed is the best way to make a decision, and you’ll improve your chances of securing someone great.
Keeping Those Tenants
Once you’ve placed great tenants, try your best to keep them. Turnovers are extremely costly, and you again open yourself up to potentially renting to a terrible renter. Beyond losing the rent for however many weeks or months your property stays empty, you’ll also need to perform all the maintenance and in-depth cleaning services required before renting to a new tenant. Sometimes, turnover can’t be prevented.
To ensure a safeguard, include a vacancy notification provision in your lease that requires your renters to give you a 30- or 60-day notice of their departure. This will give you time to perform any repairs and start advertising for a new tenant to ensure the smoothest transition as possible and keep your property filled continuously. It might seem counterintuitive, but it can actually be more lucrative to lower your rental rates a tad to attract long-term, stress-free tenants.
As stated earlier, right now the rental market is fiercely competitive, but you can increase your rental rates and find the best fit by bolstering this competition. One easy way to do this is to schedule general public open house showings. The more people see others wanting a place, the more inclined they’ll be to want it—it’s the human condition to want what others desire.
By encouraging potential tenants to come at the same time, you’ll give your property an air of desirability. Bring a friend to help you show the apartment and help you field questions while new candidates arrive to make sure you aren’t spread too thin.
You’re not going to reel in great renters with unsatisfactory curb appeal. The inside of your home could be updated and gorgeous, but if the outside screams low-quality, your tenants will head off before you even get to show them those fancy new stainless steel appliances you invested in. Give the building a fresh coat of paint from Benjaminmoore.com, do some landscaping in the front, and never show the house on trash pick-up day. Clean the front windows, make sure the walkways are swept, and do your best to ensure everything looks spick and span outside to encourage renters to take a step inside.
If you’re looking for ways to make your rental property investment more lucrative, these strategies are sure to pay off. There’s no need to break your bank account with expensive updates when you can use strategic steps to ensure you place the best candidates in your property each time, every time.